7. For a good that is a luxury, demand A. tends to be inelastic B. tends...

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7. For a good that is a luxury, demand A. tends to be inelastic B. tends to be elastic. C. has unit elasticity. D. cannot be represented by a demand curve in the usual way. 8. Price ceilings and price floors that are binding. A. are desirable because they make markets more efficient and more equitable B. cause surpluses and shortages to persist since price cannot adjust to the market equilibrium price C. can have the effect of restoring a market to equilibrium D. are imposed because they can make the poor in the economy better off without causing adverse effects 7. For a good that is a luxury, demand A. tends to be inelastic B. tends to be elastic. C. has unit elasticity. D. cannot be represented by a demand curve in the usual way. 8. Price ceilings and price floors that are binding. A. are desirable because they make markets more efficient and more equitable B. cause surpluses and shortages to persist since price cannot adjust to the market equilibrium price C. can have the effect of restoring a market to equilibrium D. are imposed because they can make the poor in the economy better off without causing adverse effects

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